You are viewing COREPRU 6.2 Basic liquid assets requirement as it appeared on 25/10/2027. The current version of COREPRU 6.2 Basic liquid assets requirement was last updated on 25/10/2027.

COREPRU 6.2 Basic liquid assets requirement

25/10/2027R

A firm must hold an amount of core liquid assets equal to the sum of:

  1. (1) one-third of the amount of its fixed overheads requirement; and
  2. (2) 1.6% of the total amount of any guarantees provided to clients.
25/10/2027R

Where a firm calculates a total amount for guarantees under COREPRU 6.2.1R(2), it must calculate:

  1. (1) the total value of guarantees that the firm has outstanding at the end of each business day; or
  2. (2) an average value for the guarantees that the firm has had outstanding over an appropriate time period, which must be updated at regular, appropriate intervals.
25/10/2027G
  1. (1) COREPRU 6.2.2R(2) is intended to allow a firm to smooth out its liquidity requirement for guarantees, where the value of its outstanding guarantees fluctuates on a daily basis.
  2. (2) An appropriate time period for calculating and updating this amount is likely to be a period that produces an average value that is representative of the overall liquidity risk arising out of the provision of guarantees to clients.
Point In Time
25/10/2027